Data & Intelligence

2011 EMPEA/Coller Capital Emerging Markets Private Equity Survey

Emerging markets will capture an even greater share of investor allocations to private equity, as LPs aggressively seek exposure to high growth markets, according to the 2011 EMPEA/Coller Capital Emerging Markets Private Equity Survey:

Key findings include:

  • EM PE LPs expect the proportion of their PE allocations directed at emerging markets to increase from 11-15% today to 16-20% in two years’ time.
  • Nearly three-quarters (73%) of LPs expect that 2011-vintage EM PE funds will outperform developed market funds of the same vintage.
  • More than half of LPs (54%) expect annual net returns from EM PE of 16% or more (compared with one-third of LPs who expect similar returns from their global PE portfolio).
  • LPs have the highest return expectations for Emerging Asia PE funds, with three-quarters (78%) expecting them to deliver annual net returns of 16% or more.
  • Brazil has leapfrogged China as the most attractive market for GP dealmaking in the next 12 months. The nascent Asian PE markets are now perceived to be as attractive as China.
  • Two-thirds of LPs claim that environmental, social and governance (ESG) considerations materially impact their GP selection process for EM PE funds.
EMPEA has served as a useful reference platform for CDPQ by helping to define the eligible universe of fund managers in growth markets. Membership provides background data and a...

Rashad Kaldany | Executive Vice-President and Growth Markets, CDPQ

The developed markets have no equivalent to the role EMPEA is playing as a convener and source of trusted information in the emerging markets.

David Rubenstein | Co-Founder and Managing Director, The Carlyle Group